Requires a reduction in sulfur emissions for all heating oil used in non-attainment areas

Section two authorizes the governor, after consultation with NYSERDA, to make exceptions by executive order for considerations of scarcity.

Justification

When number two home heating oil is burned, sulfur dioxide, a known greenhouse gas, is released into the atmosphere. Estimates have shown that reducing the sulfur content of home heating oil is an important and critical step in curbing greenhouse gas emissions. Additionally, exhaust particles formed by using home heating oil can exacerbate allergies, trigger asthma attacks, decrease lung function, cause heart attacks and shorten life expectancy.

Furthermore, reducing the sulfur content in home heating oil is inexpensive and can be done immediately. Home heating oil can be put through the same refining process that an increasing portion of diesel fuel undergoes.

Reduced equipment servicing - Higher sulfur content in fuels produces sulfur scaling on heating system component parts which adversely impacts heating system performance and reduces system efficiency. The lower the sulfur content of the fuel, the better the heating system performance which decreases the need for servicing by the consumer. Better heating system performance allows for fuller combustion of fuel which reduces emissions. All of this leads to increased consumer savings both on system maintenance and reduced fuel costs as less fuel is used.

Increased Fungibility - By having one standard for 2 heating oil, heating oil supplier's can service all of their customers from the same truck. Currently, home heating oil customer's have to be supplied differently than other 2 fuel oil users using 2 fuel oil in an off road application such as excavators, farm equipment, generators, marine use, etc. The average cost of a new truck is $135,000. Therefore, increased fungibility of the product improves distribution efficiencies and lowers costs. This fungibility will also make additional fuel storage available at terminals since they will not need to carry the different fuels. This additional capacity can be used to accommodate renewable biofuels.

Supply of 15ppm sulfur 2 heating oil - According to the United States Department of Energy's Energy Information Administration (EIA), in 2008 the distillate market, excluding jet fuel, was a 59 billion gallon market. Of this, on-road diesel, off-road diesel, and farm use account for 44 billion gallons or 76% and all of these uses must be 15ppm later this year. According to the united States Environmental Protection Agency, as reported by the Clean Diesel Fuel Alliance, through the end of the third quarter of 2009, 99% of all diesel pumps were distributing ultra low sulfur diesel (ULSD). Railroads and marine use are capped at 15ppm in 2012 and are currently 4 billion gallons. when added to the diesel and farm uses, this totals 48 billion gallons or 83% of total distillate use. Residential and commercial heating oil only account for 7 billion gallons or 12% of the total.

New York State is the largest consumer of home heating oil. By taking action to reduce sulfur content, we will lead the country in eliminating one of the causes of global warming and improving the health of those suffering from respiratory and other conditions as a result of unclean fuel.

Support

American Lung Association American Cancer Society Empire State Petroleum Association, Inc. Environmental Advocates of New York Environmental Defense Action Fund Hudson Valley Oil Heat Council Natural Resources Defense Council New York City Mayor's Office New York Oil Heating Association, Inc. New York League of Conservation Voters Oil Heat Manufacturers of Central New York Oil Heat Manufacturers of Eastern New York Oil Heat Institute of Long Island Oil Heat Manufacturers Association Teamsters Joint Council No. 16: International Brotherhood of Teamsters Teamsters Local Union No. 553 United Puerto Rican Organization of Sunset Park WE ACT for Environmental Justice

Opposition

ConocoPhilips HESS Corporation New York State Association of Town Superintendents of Highways, Inc. New York State Motor Truck Association New York State Petroleum Council

Fiscal implications

None.

Effective date

Immediately.